payoff 2nd short & reinstate the 1st

is it possible to payoff the 2nd at the negotiated short sale price ($1000) and reinstate the 1st adding all the arrearages to the back of the loan if you already negotiated both of them for a shortsale when both loans are with the same mortgage holder?

yes. I just did it two weeks ago.

shorted the second fro 85k to $1,000, brough the first current with $9k and now iahve it up for sale and there is now 120k in equity.


How did you do it? Did you ask the loss mitigagtor can you pay off the 2nd or did you just wire the money? How do I ask for this because they (EMC mortgage) told me no, you can’t do that but i’ve heard it can be done. Thanks!

well firstly you NEVER tell the second you are doing that. You may have sunk your deal by telling them.

I sent them a HUD with the first PAYOFF and the second relfecting $1,000.

Then we called the attorney got the numbers to bring it current.
we then paid it via the title company and they sent the second their check for the $1,000.

we got the satisfaction from the second and the title recorded it.

One thing I have been taught is, if you are doing anything creative… NEVER, NEVER, EVER tell any lender what your doing.

hope this helps.


Thanks! I wish I had asked that question on this forum yesturday. Both loans were with the same mortgage company? I think you’re right…I messed that one up.